FP from Sanctum here, sharing my two cents.
It’s tempting to portray Sanctum as an “attack” on JitoSOL’s liquidity. In reality there is give and take. Sanctum provides over 400,000 SOL (~$100M+) in the Sanctum Reserve, which is open to all LSTs, including JitoSOL. This helps jitoSOL-SOL maintain its peg. Additionally, instead of being one-way, the router also allows jitoSOL to access the liquidity of other large LSTs like mSOL and bSOL.
I think @Andrew makes a good suggestion here, and I’d be happy to explore the below with the Jito DAO:
- Sanctum agrees to modify their router to include a fee directed towards the Jito DAO. This fee would serve two purposes: (i) disincentivize routing through jitoSOL liquidity (as the route becomes expensive) and (ii) monetize any routes that do, which could then be used to further incentivize deep jitoSOL/SOL liquidity.
It’s my deep desire to work with the Jito DAO to build a positive-sum staking ecosystem for Solana, rather than trying to cut each other out.